The Mortgage
Bankers Association (MBA) reported on
Wednesday that the mortgage application volume in the U.S. surged 3.9 per cent
in the week ended July 12, following a 0.2 per cent slip the week before. This marked the first weekly increase in mortgage
applications in three weeks, the pace of which was also the strongest since the
week ended June 7 (+15.6 per cent).
According to
the MBA’s data, last week’s jump in mortgage applications was due to a 15.2 per cent soar in mortgage
refinance applications. Meanwhile, mortgage applications to purchase a home declined
2.7 per cent.
The report also
revealed that the average fixed 30-year mortgage rate dropped
from 7.00 per cent to 6.87 per cent, the lowest level
since the week ended March 8 (6.84 per cent).
Commenting on
the latest survey results, Joel Kan, MBA’s vice president and deputy chief
economist, noted that mortgage rates declined last week, as recent signs of
cooling inflation and the increased likelihood of Fed rate cuts later this year
pulled them lower.